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Telecom Sector is not only considered to be critical for economic development of any country but also is of strategic interest as it provides effective communication channels to security forces. The Indian Telecom Sector has developed tremendously and has turned into the second biggest after China. BSNL and MTNL offered Voluntary Retirement to their employees, aged 50 years and above through attractive Voluntary Retirement Scheme (VRS), the cost of which will be borne by the Government of India through budgetary support. VRS would lead to reduction of recurring expenditure, which can be a good strategy for the future Study was conducted in Delhi; the main purpose of this research paper is to study the impact of VRS on state run telecom MTNL and its subsequent improvement in performance of the organisation service providers.
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